Facebook Inc (FB), LinkedIn Corp (LNKD): Are You Linked to This Company’s Growth?

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This monster is in some trouble!

While LinkedIn’s business has grown in various directions, it still remains a platform for connecting potential hires and eligible candidates at the core. One direct competitor to the company in this space is Monster Worldwide, Inc. (NYSE:MWW) that operates the famous jobs website monster.com. Monster had a bit of a rough time in Q2, 2013 as net income dropped to $3.4 million from $4.8 million (last year same period) due to a fall in revenue.

As management highlighted, the global economy has still not recovered completely and hence, the company is not seeing any major leaps in quarterly results. Also, there has been no change in guidance for Q3 as EPS is expected to be in the range of $0.06 to $0.10 per share. It is easy enough to see that things are moving quite slowly at Monster Worldwide, Inc. (NYSE:MWW) and as a result, investors are not placing any big bets on the stock.

Invest in LinkedIn’s growth

Getting straight to the point, I would happily invest in LinkedIn at this point, not because of its Q2 results but for the growth opportunities that lie ahead. It is difficult to survive in an industry with such fierce competition, but LinkedIn has done it in a magnificent way. The reason behind this success lies in its well-placed strategies.

An explosive growth in the next few years will come from mobile and the company has already started working on it. In April, it launched a new iOS and Android app, which saw a 40% lift in mobile engagement than the previous app. I am happy to see that LinkedIn has realized the potential of mobile and started working on it to revamp the experience of its users.

One of the things that have made Google so huge is valuable and mindful acquisitions. Well, LinkedIn has cleverly followed a similar path by adding new businesses to its portfolio with the overall objective of satisfying users. Last year, it acquired the content sharing platform Slideshare, a move that is going to generate huge returns very soon. Slideshare page views were up more than a 100% year over year in Q2, 2013. Thus, you can imagine the massive potential of Slideshare, once it gets into mainstream marketing solutions.

To sum it all, LinkedIn Corp (NYSE:LNKD) is a superb investment for its products, opportunities, and an efficient management team.

The article Are You Linked to This Company’s Growth? originally appeared on Fool.com and is written by Mihir Mehta.

Mihir Mehta has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn. Mihir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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